Redbox to Be Acquired in $375 Million Deal by Chicken Soup for the Soul Entertainment
variety.comTodd Spangler NY Digital EditorRedbox Entertainment, the struggling DVD kiosk and streaming video company, has set a deal to be acquired by Chicken Soup for the Soul Entertainment in an all-stock transaction.The company will operate more than 38,000 kiosks nationwide as well as digital media services spanning ad-supported and transactional video services.
The deal is valued at $375 million, comprising about $50 million in stock and the new company’s assumption of $325 million in debt.The deal comes after Redbox in October 2021 became a publicly traded company after merging with a special purpose acquisition company (SPAC).
Last month Redbox laid off 150 employees, roughly 10% of its total headcount, amid a steep slowdown in business and growing net losses.
Under the terms of the agreement, which has been approved by the boards of both companies, Redbox stockholders will receive a fixed exchange ratio of 0.087 of a share of class A common stock of Chicken Soup for the Soul Entertainment per Redbox share.
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